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Example Cases

Learn valuable lessons from these organisations:

American First Credit Union

Development of a Personalised Outreach for each Customer using CRM

Strong competition led the Union to seek to increase its customer base by implementing CRM. The Union's primary aims for CRM were to engage members at all touch points, record their preferences, and to develop a personalised outreach for each customer. Strategic goals were to:

  • Differentiate the organisation from its competitors
  • Base interactions on the self-defined goals, and life stages, of members
  • Boost members' satisfaction to ensure that the Union was their most trusted financial adviser.

Over a 24 month period CRM contributed to increasing the:

  • Members using 2 or more financial products/services by 10 percent
  • Average no. of products per member by 0.44 products
  • Percentage of profitable relationships 5.5 percent
  • Cross-sell services ratio from 0.62 to 2.62
  • Cross-sell accounts ratio from 0.96 to 3.4
Direct Line Insurance plc

An Easy Company to Deal With

Direct Line, a UK-based direct home and motor insurer, wanted to be an easy company to deal with. To achieve this a CRM system was set up to hold information on its 18 million customers and allow easy updating from 60,000 daily transactions. To price accurately, build customer relationships, provide high quality coverage and service, and retain customer loyalty, the company analysed customer behaviour and adjusted premiums based on levels of overall actuarial risk. Through rigorous analysis of the data the company was able to adopt a policy of non-negotiable quotations, to vet customers itself, and cut out brokers` commissions (typically 15-20 % of premiums written), in order to keep prices competitive. The company has since been able to expand into personal loans, mortgages, and individual savings accounts. As a result, by 2002 Direct Line was the leading UK direct insurer for both motor and household insurance, profits had grown 65 % every year between 1996 and 2000, and group profits before tax had grown nearly 350 % annually between 1998 and 2000. (Gillies et al, 2002)

3M United Kingdom

Occupational Health and Environmental Safety Division Implements "Off-the-shelf" CRM System

At global healthcare products manufacturer 3M (UK) the Occupational Health and Environmental Safety division implemented a 200-user "off the shelf" CRM system. The successful implementation capped the end of a four-year review of 3M's business systems. The CRM system enabled all personalised customer data to be accessible in one location. Mailing responses as high as 30 to 40 % have been achieved, costs have been significantly reduced, and all implementation work was carried out in-house. Measurements such as, "the average value per opportunity by market", were more readily available which enabled specialised marketing campaigns to be launched. The time to familiarise sales staff with new territories was reduced by a third. To help implement the system in its European sites, 3M used strategies such as a transformation map, a best practice road map, and finally an auditable/ quantifiable ROI model with which it was possible to achieve management buy-in and to maintain momentum. (Palmer, 2002)

Capital One Financial Corporation

CRM Programme Assists in Gaining Industry Leadership

Capital One Financial Corporation, a US credit card issuer, invested heavily in a CRM programme intended to nurture its customers and ensure delivery of the right product at the right time to the right customer. The programme was so successful that it even allowed the company to deliver products that customers were not aware they needed. As a result the company went from start-up in 1995 to industry leadership in just five years. (Ragins & Greco, 2003)

U.S. Internal Revenue Service

CRM Used to Streamline Corporate Tax Payments

The U.S. Internal Revenue Service used CRM techniques to streamline its corporate tax payments processes, which occurred 100,000 times a day. The service analysed its taxpayer call data and volumes and as a result of applying CRM techniques:

  • Instituted a rolling mail-out by ZIP code;
  • Reduced by over 40 % the time taken by taxpayers to phone in payments - average length of call was reduced to 2 minutes and 20 seconds;
  • Reduced by 90 percent the number of 'help' requests.(Pang & Norris, 2002)


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